AVSC 1030 Lesson 14 - Lesson 14 Introduction There are...

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Lesson 14 Introduction There are multiple reasons airline customer service will be in constant change. The industry itself is extremely fluid and vulnerable to regulation changes, fuel costs, political impacts, and advances in technology. Profit margins are amazingly thin in the industry and as a result competition is fierce. Increased passenger travel also puts a great deal of strain on airlines especially with their ability to provide consistent quality customer service. Advancements in technology such as online ticketing, ticket kiosks, and computerized phone answering systems limit or minimize the number of human interactions passengers have with airline representatives. Even with this interaction reduced, the airlines that continually provide positive customer service experiences will have an easier time drawing passengers to their carrier. This lecture will discuss various avenues of customer service throughout the airline industry for the foreseeable future. With an industry in such constant change these avenues may change quite rapidly. Airlines Tighten Pockets Airlines are increasingly looking for ways to cut costs to maintain an operational advantage over competition and increase profit margins. Low cost carriers are perhaps the most successful at this and have created many ways to increase profit margins. Two of the industries most successful cost cutters are Ryanair and Southwest Airlines. Ryanair Ryanair is an Irish airline based out of Dublin, Ireland. Ryanair is Europe's largest low-cost airline and is enormously successful. Their success is largely due to the deregulation of Europe's airline industry, the low-cost fares they provide, and a radical management style similar to Southwest Airlines. With all of their success they have left some passengers frustrated at the way they do business. Ryanair is one of the most aggressive airlines for passing fees onto the consumer. They charge for almost everything including: Checked bags, a wheelchair levy, sports equipment, and musical equipment as well as credit card fees, debit card fees, priority boarding fees, online check- in/priority fees, infant fees, flight change fees, and a name change fees. The airline also offers no toll-free number for passengers to contact them, and if there is a flight change they will notify you only through e-mail. Ryanair's stingy practices have made them one of the most profitable airlines in the world, however, that has come at a customer service cost. In a 2006 TripAdvisor poll, Ryanair was voted the "least favorite airline", which was largely attributed to the unfriendly staff. Their practices of poor customer service and resultant profitability defy conventional thinking that customer service is a major key in repeat business. If airlines in the United States adopted these practices we will have much more unfriendly skies in the future. Southwest Airlines
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This note was uploaded on 09/04/2011 for the course AVSC 1030 taught by Professor Smith during the Spring '11 term at Utah Valley University.

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AVSC 1030 Lesson 14 - Lesson 14 Introduction There are...

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